Final answer:
The Treaty of Versailles was signed in the historical Palace of Versailles by the Big Four, symbolizing the end of World War I and the shift in European power dynamics. It was a comprehensive agreement imposing significant penalties on Germany and redrawing Europe's borders, reflecting the influence of major Allied powers' interests over President Wilson's vision for world peace.
Step-by-step explanation:
The Treaty of Versailles, which officially ended World War I, was signed in the Palace of Versailles, historically chosen by the Big Four comprising of President Wilson of the U.S., British Prime Minister David Lloyd George, French Premier Georges Clemenceau, and Italian Prime Minister Vittorio Orlando.
The site was symbolic, signifying not only a translation from war to peace but also serving as a stark reminder of past glories and the power shifts in Europe. The treaty itself was a complex document that aimed at redrawing Europe's borders and imposing severe penalties on Germany, including territorial losses, reparations, and a war guilt clause.